Economic Development

Economic Development

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Levels of economic development in Spain

Economic development refers to the actions of public officers, citizens and organizations that attempt to promote the economic levels of a country. The other criteria in determining a country’s development include the human development index. The economy of Spain has been ranked as the twelfth largest economy in the world based on GDP results. In Spain, the Gross Domestic product (GDP) averaged 0.6 in the first quarter of 2012. Spain has also part of the European Union since its inception.

Walt Rostow is one of the scholars who came up with the five theories of categorizing development. According to Rostow, who developed the five stages of economic development, Spain has achieved the take-off stage of development. At this stage, Spain has an increased level of industrialization with various establishments in the metal industry, shipbuilding, automobiles and pharmaceuticals among other minor industries. The level of agricultural production is also slowly decreasing as many farmers switch from tropical crops to industrial employment. Spaniards have also gradually increased their levels of saving and investment over the years (Kotler & Armstrong, 2012).

Economic development influence on EduTot marketing strategy

Apart from a country being in the take off stage, the other levels include the traditional, the transitional stage, the drive to maturity and the stage of high mass consumption. The main differences between these five stages exists in their degrees of market activity, their levels of economic infrastructure and the business opportunities present within these countries. Other non-economic differences include the cultures, attitudes and stereotypes as well as the political atmospheres in these countries. For a company producing educational toys, marketing factors play a major role in determining the degree of success.

Within Spain, the distribution of EduTot’s products will be facilitated by the expansive transport and communication networks within the country. Spain has a major part of her territory interconnected by tarmac roads that will ensure the delivery of EduTot’s products to many markets. The communication networks are also well defined. The Internet, telephone, fax and mail have been extensively established within Spain (Roman, 1971). This cannot be compared to a country in the take off stage where timely delivery of goods to potential customers is hampered by poor transport infrastructure and a lack of communication among partners.

Promotion of educational games such as those from EduTot requires the company to make in reaches into academic-affiliated institutions. Promoting sales within a “take-off” country like Spain is relatively less costly and more efficient than in developing countries. Presenting the products to consumers will require a strong advertising campaign; endorsement and these methods are not very effective in countries still at the traditional level. This is because most of the public are still illiterate and they lack the purchasing power. Therefore, EduTot’s game might be purchased by many high schools in Spain but hardly any will be purchased at the same price in a school in Kampala, Uganda or New Delhi, India (Taku, 1999).

Pricing strategies are also affected by the level of a county’s economic development. Within Spain,  the management of EduTot’s products can afford to place higher price on their game as a larger part of the consumers within the country have stable sources of income and can afford to purchase such tertiary products. Within countries at the traditional stage, the management must re-strategize their approach, as most of the public are not financially stable. This means they have to seek out cheaper methods of manufacture, promotion and distribution in order to make profits on the educational toys.

References

Kotler, P., & Armstrong, G. (2012). Principles of marketing. Boston: Pearson Prentice Hall.

Roman, M. (1971). The limits of economic growth in Spain. New York: Praeger Publishers.

Taku, T. A. (1999). Framework for industrialization in Africa. Westport, Conn: Praeger.

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